WASHINGTON, D.C. – The Consumer Financial Protection
Bureau (CFPB) today announced the launch of a new Mortgage Performance Trends
tool that tracks delinquency rates nationwide. Information newly available
through this tool shows that mortgage delinquency rates nationally are at their
lowest point since the financial crisis. In addition to national data, the
online tool features interactive charts and graphs with data on mortgage
delinquency rates for 50 states and the District of Columbia at the county and
metro-area level.

"Measuring the number of consumers who have fallen behind on
their mortgage payments is a telling barometer of the health of mortgage
markets locally and nationally," said CFPB Director Richard Cordray. "This rich
information source identifies mortgage delinquency rates down to the county and
metro-area level, making it a useful public tool."

With a combined value of roughly $10 trillion, mortgages make
up the nation’s largest consumer credit market. A delinquent mortgage is a home
loan for which the borrower has failed to make payments as required in the loan
documents. If the borrower can't bring the payments on a delinquent mortgage
current within a certain time period, the lender may begin foreclosure
proceedings. Whether consumers can make their mortgage payments is an important
sign of the health of the mortgage market and the overall economy. For
instance, job growth, higher wages, and higher home values generally lead to
fewer missed or late mortgage payments.

The Mortgage Performance Trends tool measures the
delinquency rates in two general categories. The first category is comprised of
borrowers who are 30 to 89 days behind on their mortgage payments, which
generally means they have missed one or two payments. Tracking this rate can
detect trends in the increase or decrease in the number of delinquencies, and
act as an early warning sign for mortgage market developments that impact the
overall economy. The second category is serious delinquencies, which is made up
of borrowers who are more than 90 days overdue. If high, this rate reflects
more severe economic distress.

The interactive charts and maps in the tool track monthly
changes in both categories of delinquency rates starting in 2008, when the
financial crisis was unfolding. Leading up to the crisis, some lenders
originated mortgages to consumers without considering their ability to repay
the loans. The decline in underwriting standards led to skyrocketing rates of
mortgage delinquencies and foreclosures. As required by the Dodd-Frank Wall
Street Reform and Consumer Protection Act, the CFPB put in place rules to
address the issues that helped trigger the crisis. These rules require lenders
to assess a borrower’s ability to repay a mortgage before making the loan and
require servicers to assist borrowers struggling to repay their mortgages.
Mortgage delinquency data reflected in the Mortgage Performance Trends tool
shows that among other things:

Rates of serious delinquency are at the
lowest level since the financial crisis: According to the data, the
national rate of seriously delinquent mortgages peaked at 4.9 percent in 2010.
As of March 2017, the rate had fallen to 1.1 percent, the lowest level since
2008. Colorado and Alaska have the fewest serious delinquencies, with 0.5
percent. New Jersey and Mississippi have the highest rates of delinquencies of
more than 90 days, with 2.1 percent. For mortgages that are delinquent by less
than 90 days, Mississippi has the highest rate, at 4.3 percent. Washington
State has the lowest rate, at 1 percent.

Most states hardest hit by the housing crisis
have steadily recovered: At the peak of the financial crisis, both
California and Arizona had rates of serious delinquencies of 7.5 percent and
7.6 percent, respectively, and both are now below 1 percent. Nevada,
which peaked at 10.7 percent, now has a serious delinquency rate of 1.2
percent, nearly the same as the national average. Florida, which peaked at 9.0
percent, now has a rate of 1.4 percent.

Information in the Mortgage Performance Trends tool comes
from the National Mortgage Database, which the CFPB and the Federal Housing
Finance Agency launched in 2012. The database supports policymaking and research,
and helps regulators better understand emerging mortgage and housing market
trends. The National Mortgage Database includes information spanning the life
of a mortgage loan from origination through servicing and captures a variety of
borrower characteristics. It is a nationally representative sample of all
outstanding, closed-end, first-lien mortgages for one-to-four family
residences.

The Mortgage Performance Trends tool has many protections in
place to protect personal identity. Before the CFPB or the FHFA receive data
for the National Mortgage Database, all records are stripped of information
that might reveal a consumer’s identity, such as names, addresses, and Social
Security numbers.

The Consumer Financial Protection Bureau is a 21st century
agency that helps consumer finance markets work by making rules more effective,
by consistently and fairly enforcing those rules, and by empowering consumers
to take more control over their economic lives. For more information, visit
consumerfinance.gov.